Rail Vikas Nigam Limited (RVNL) is a public sector undertaking under the Ministry of Railways, Government of India. It was incorporated on 24 January 2003 with the objective of implementing railway infrastructure projects on a fast track basis. RVNL has executed a number of projects across India, including new lines, gauge conversions, doubling, electrification, and construction of bridges.
RVNL Overview
| Feature | Description |
|---|---|
| Company Name | Rail Vikas Nigam Limited (RVNL) |
| Established | 24 January 2003 |
| Ministry | Ministry of Railways, Government of India |
| Objective | Implement railway infrastructure projects on a fast track basis |
| Projects | New lines, gauge conversions, doubling, electrification, and construction of bridges |
| Funding Sources | Budgetary support from the Ministry of Railways, extra budgetary resources mobilized by RVNL, and private sector participation |
| Strengths | Experience and expertise, financial strength, project management capabilities |
| Achievements | Completion of over 100 projects, mobilization of extra budgetary resources, private sector participation |
| Role | Play a key role in the development of India’s railway infrastructure |
| Commitment | Implement projects on time and within budget, and to providing high quality services to its clients |
RVNL Products
| Product Category | Product | Description |
|---|---|---|
| New Lines | Construction of new railway lines | RVNL constructs new railway lines to connect new areas to the existing railway network and improve connectivity. |
| Gauge Conversions | Conversion of narrow gauge railway lines to broad gauge | RVNL converts narrow gauge railway lines to broad gauge to increase the speed and capacity of trains. |
| Doubling | Laying an additional track alongside an existing track | RVNL lays an additional track alongside an existing track to increase the capacity of a railway line and reduce congestion. |
| Electrification | Electrification of railway lines | RVNL electrifies railway lines to enable the use of electric locomotives, which are more environmentally friendly and energy-efficient than diesel locomotives. |
| Bridges | Construction of railway bridges | RVNL constructs railway bridges to cross rivers, valleys, and other obstacles. |
RVNL Awards and Recognition
| Award | Year | Category |
|---|---|---|
| Most Admired PSU in Rail Infra Development | 2022 | ‘EPC & Construction’ category at the 2nd Urban Infra Business Summit & Awards |
| Winner for outstanding achievements in ‘Construction Safety’ Award category | 2023 | 21st Greentech Safety Awards |
| Winner in the Award Category ‘Operational Performance Excellence’ | 2023 | |
| Winner for Corporate Governance by Greentech Foundation | 2021 | Corporate Governance Summit |
RVNL Fundamentals
| Financial Metric | Value | Description |
|---|---|---|
| Market Capitalization | ₹107,873.83 crore | The total market value of all outstanding shares of RVNL |
| Revenue | ₹8,293.74 crore | The total amount of money that RVNL earned from its operations in the last financial year |
| EBITDA | ₹2,052.38 crore | Earnings before interest, taxes, depreciation, and amortization, a measure of a company’s profitability |
| EPS | ₹69.75 | Earnings per share, a measure of a company’s profitability per share of outstanding stock |
| P/E Ratio | 14.30 | Price-to-earnings ratio, a valuation multiple that measures the price of a stock relative to its earnings |
| P/B Ratio | 4.51 | Price-to-book ratio, a valuation multiple that measures the price of a stock relative to its book value per share |
| Dividend Yield | 2.38% | The annual dividend payout as a percentage of the current stock price |
| Debt/Equity Ratio | 1.44 | A measure of a company’s financial leverage, indicating the proportion of debt to equity financing |
| Book Value | ₹154.63 | The value of a company’s assets minus its liabilities, divided by the number of outstanding shares |
| Face Value | ₹10 | The par value of a share of stock, as set by the company’s charter |
| ROE | 20.94% | Return on equity, a measure of a company’s profitability relative to its shareholders’ equity |
| Debt | ₹34,757.29 crore | The total amount of money that RVNL owes to its lenders |
RVNL Revenue and Net Profit
| Financial Year | Revenue (₹ crore) | Net Profit (₹ crore) |
|---|---|---|
| 2022-23 | 8,293.74 | 1,341.75 |
| 2021-22 | 7,795.20 | 1,110.14 |
| 2020-21 | 7,332.82 | 991.57 |
| 2019-20 | 6,318.44 | 753.32 |
| 2018-19 | 5,454.30 | 637.67 |
RVNL Shareholding Patterns
| Shareholder Category | Shareholding Percentage |
|---|---|
| Promoters and Promoter Group | 72.84% |
| Institutions | 27.16% |
| Foreign Institutional Investors (FIIs) | 2.33% |
| Domestic Institutional Investors (DIIs) | 5.69% |
| Mutual Funds | 0.13% |
| Retail Investors | 19.01% |
RVNL Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Share Price Target (₹) |
|---|---|
| 2024 | ₹298.29 – ₹313.91 |
| 2025 | ₹417.61 – ₹455.91 |
| 2026 | ₹536.88 – ₹604.08 |
| 2027 | ₹656.54 – ₹759.32 |
| 2028 | ₹776.20 – ₹914.56 |
RVNL Share Price Target for 2024
Analysts have a bullish outlook on RVNL’s share price for 2024, with estimates ranging from ₹298.29 to ₹313.91.
RVNL Share Price Target for 2025
Analysts have a bullish outlook on RVNL’s share price for 2025, with estimates ranging from ₹417.61 to ₹455.
RVNL Share Price Target for 2026
The consensus among analysts for RVNL’s share price target in 2026 is a range of ₹536.88 to ₹604.
RVNL Share Price Target for 2027
Analysts have provided a range of ₹656.54 to ₹759.32 for RVNL’s share price target in 2027.
RVNL Share Price Target for 2028
Analysts have projected a range of ₹776.20 to ₹914.56 for RVNL’s share price target in 2028.
RVNL Dividend History
| Year | Financial Year | Total Paid up Capital (as on 31st March of the year) (Rs. in crore) | Total Amount of Dividend paid for the financial year (Rs. in crore) |
|---|---|---|---|
| 2023 | 2022-23 | 2215.31 | 21.30 |
| 2022 | 2021-22 | 2085.02 | 30.70 |
| 2021 | 2020-21 | 2085.02 | 26.90 |
| 2020 | 2019-20 | 2085.02 | 23.10 |
| 2019 | 2018-19 | 2085.02 | 18.69 |
Future Outlook of RVNL
Key factors driving RVNL’s future growth:
- Government’s infrastructure push: The Indian government is committed to investing in infrastructure development, and RVNL is a key player in this sector. The government has allocated a significant amount of money to infrastructure projects in the coming years, which will benefit RVNL.
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Expansion into new markets: RVNL is expanding into new markets, such as urban transportation and irrigation, which could provide additional growth opportunities. The company is also looking to expand its international presence.
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Strong order book: RVNL has a strong order book of over ₹80,000 crore, which provides visibility for future revenue growth. The company is also expected to win new projects in the coming years.
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Track record of project execution: RVNL has a strong track record of project execution. The company has completed over 100 projects on time and within budget.
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Strong financial position: RVNL has a strong financial position with a healthy debt-to-equity ratio. The company is also generating strong cash flows.
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Risks Associated With Investing in RVNL
| Risk Factor | Description | Potential Impact |
|---|---|---|
| Financial Risk | RVNL’s financial performance is dependent on the timely execution of its projects and the cost of its projects. If RVNL is unable to execute its projects on time or within budget, or if the cost of its projects increases significantly, its profitability could be hurt. | A decline in RVNL’s profitability could lead to a decrease in its share price. |
| Operational Risk | RVNL is exposed to operational risks, such as delays in project approvals, labor strikes, and natural disasters. These risks could disrupt RVNL’s operations and lead to cost overruns. | Operational risks could lead to a decrease in RVNL’s profitability and a decrease in its share price. |
| Competition Risk | RVNL faces competition from other infrastructure companies, both in the public and private sectors. This competition could put downward pressure on RVNL’s margins and make it difficult for the company to win new projects. | Increased competition could lead to a decrease in RVNL’s profitability and a decrease in its share price. |
| Regulatory Risk | RVNL is subject to regulatory risks, such as changes in government policies. For example, changes in government regulations could increase the cost of RVNL’s projects or make it more difficult for the company to obtain project approvals. | Regulatory risks could lead to a decrease in RVNL’s profitability and a decrease in its share price. |
RVNL Competitors
| Competitor | Public or Private | Description |
|---|---|---|
| Ircon International Limited | Public | A public sector enterprise under the Ministry of Railways, India, engaged in the construction of railways, bridges, tunnels, and other infrastructure projects. |
| Rail Vikas Nigam Limited | Public | A public sector undertaking under the Ministry of Railways, India, engaged in the construction of new railway lines, gauge conversions, and doubling of existing railway lines. |
| L&T Construction | Private | A leading Indian infrastructure conglomerate with a strong presence in the construction of roads, railways, airports, and other infrastructure projects. |
| Afcons Infrastructure Limited | Private | A leading Indian infrastructure company with a strong presence in the construction of highways, bridges, tunnels, and other infrastructure projects. |
| HCC Infrastructure Limited | Private | A leading Indian infrastructure company with a strong presence in the construction of bridges, tunnels, and other infrastructure projects. |
RVNL Share Price FAQs
What is RVNL’s share price target for 2023?
Analysts have a bullish outlook on RVNL’s share price for 2023, with estimates ranging from ₹199.20 to ₹223.20. This represents a potential increase of 20-35% from the current share price.
What is RVNL’s share price target for 2024?
Analysts have a bullish outlook on RVNL’s share price for 2024, with estimates ranging from ₹298.29 to ₹313.91. This represents a potential increase of 80-90% from the current share price.
What is RVNL’s share price target for 2025?
Analysts have a bullish outlook on RVNL’s share price for 2025, with estimates ranging from ₹417.61 to ₹455.91. This represents a potential increase of 150-170% from the current share price.
What is RVNL’s share price target for 2026?
Analysts have a bullish outlook on RVNL’s share price for 2026, with estimates ranging from ₹536.88 to ₹604.08. This represents a potential increase of 220-250% from the current share price.
What is RVNL’s share price target for 2027?
Analysts have a bullish outlook on RVNL’s share price for 2027, with estimates ranging from ₹656.54 to ₹759.32. This represents a potential increase of 290-350% from the current share price.
What is RVNL’s share price target for 2028?
Analysts have a bullish outlook on RVNL’s share price for 2028, with estimates ranging from ₹776.20 to ₹914.56. This represents a potential increase of 360-430% from the current share price.
How is RVNL for long-term investing?
RVNL is a good long-term investment due to its strong order book, track record of project execution, and strong financial position. The company is well-positioned to capitalize on the growth of the Indian infrastructure sector, and its share price is expected to increase significantly in the coming years.
Is RVNL a good buy?
Overall, RVNL is a good buy for long-term investors. The company is well-positioned to capitalize on the growth of the Indian infrastructure sector, and its share price is expected to increase significantly in the coming years.
DISCLAMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
